Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $430,000 for a standard

Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $430,000 for a standard production run that generates 200,000 pints of Smooth Skin and 170,000 pints of Silken Skin. Smooth Skin sells for $4.00 per pint, while Silken Skin sells for $5.20 per pint. (Do not round intermediate calculations. Round final answers to nearest whole dollar amounts.)

Required:

1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method?

2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method?

3. If separable processing costs beyond the split-off point are $1.40 per pint for Smooth Skin and $1.40 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method?

4. If separable processing costs beyond the split-off point are $1.40 per pint for Smooth Skin and $1.40 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method?

  1. Relative sales value method- Smooth Skin : ?
  2. Physical measure method - silken Skin :?
  3. Net realizable value method - Silken Skin : ?
  4. Physical measure method - Smooth Skin :?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Kemp, Jeffrey Waybright

5th edition

134727797, 9780134728643 , 978-0134727790

More Books

Students also viewed these Accounting questions

Question

Explain the limitations placed on deductions for medical expenses.

Answered: 1 week ago